• Home
  • COVID-19
  • Life
  • Critical illness
  • Income protection
  • Health
  • Employee benefits
  • Regulation
  • Diversity
  • Mental health
  • Events
  • Industry Voice
  • Newsletters
  • Sign in
  •  
    •  

      Personalise your on site experience.


      Download and use the apps.


      Access your subscription from outside of the office.


      Get relevant news and insight straight to your inbox.

      • Sign in
     
      • Account details
      • Contact support
      • Sign out
     
  • Follow us
    • Twitter
    • LinkedIn
    • Newsletters
    • YouTube
    • Instagram
  • Register
  • Events
    • Upcoming events
      event logo
      Business as usual? Mental health and wellbeing in a post-pandemic era

      As we enter a new year, how is the health and protection insurance sector poised to support the mental health and wellbeing needs of individuals and employees? Taking place on Blue Monday (18 January 2021), this interactive online webinar in association with Aviva, featuring leading industry thinkers and mental health experts, will explore:-The evolution of healthcare in a post-pandemic world – where next? -The changing conversation around mental health & wellbeing and the role of prevention -The remote revolution: adapting to the ‘new normal’ and supporting the needs of individuals and employees

      • Date: 18 Jan 2021
      event logo
      Mental Health & Wellbeing 360
      • Date: 25 Mar 2021
      • Digital Conference,
      View all events
      Follow our events

      Sign up to receive email alerts about our events

      Sign up

  • Industry Voice
Cover Magazine
Cover Magazine
  • Home
  • COVID-19
  • Life
  • Critical illness
  • Income protection
  • Health
  • Employee benefits
  • Regulation
  • Diversity
  • Mental health
 
  •  

    Personalise your on site experience.


    Download and use the apps.


    Access your subscription from outside of the office.


    Get relevant news and insight straight to your inbox.

    • Sign in
 
    • Account details
    • Contact support
    • Sign out
 
  • Employee Benefits

'Biggest ever' EAP data analysis reveals ROI for UK employers

Study by Employee Assistance Professionals Association (EAPA)

'Biggest ever' EAP data analysis reveals ROI for UK employers
  • Adam Saville
  • Adam Saville
  • @AdSaville_COVER
  • 14 October 2020
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
0 Comments

For every £1 spent on an employee assistance programme (EAP), UK employers see an average return on investment of £7.27

A common challenge for employee benefits consultants and group risk advisers is quantifying - and therefore communicating - the tangible return of investment (ROI) for employee assistance programmes (EAPs) to UK employers.

A new study from the Employee Assistance Professionals Association (EAPA) has set out to calculate the financial value of EAPs in relation to the impact of employee absence, presenteeism and productivity on businesses.

Related articles

  • MetLife launches simplified income protection policy
  • SME trust in insurers has slipped following Covid
  • Stamp duty holiday opens door to protection conversations
  • ActiveQuote appoints new head of technology

The analysis, which uses the biggest data set on EAP usage yet, takes in 2,000 calculations made via the EAPA's UK ROI calculator since the beginning of 2019, representing anonymised information for four million employees.

The figures, presented as part of a report titled Financial Return on EAPs 2020: How Does Your Organisation Compare?, shows that for every £1 spent on an EAP, UK employers see an average ROI of £7.27, whatever the size, company, sector, geographical location or service used. This compares with the ROI of £5 for every £1 spent on tactics for supporting employee mental health in general proposed by the Deloitte report, Mental health and employers: the case for refreshing investment, earlier this year.

According to the new findings, EAP usage is also consistent - around 10.4% of a workforce - and sectors with the highest ROI are transport and utilities (£8.61); manufacturing (£7.68); and finance (£7.64). The lowest are: agriculture (£4.12) and charities (£7.11).

National employers, located at premises across the UK, have lower ROI (£6.61), compared with the highest in Northern Ireland (£8.60), the North East (£7.96) and South West (£7.92). 

'Where usage is higher, ROI is greater'

"The new data is valuable evidence of the scale and consistency of ROI from EAPs," said Paul Roberts, project lead and EAPA executive. "Wellbeing resilience, more than ever, is a pillar of organisational performance, and HR need proof of how their approaches are working." 

"The variations that do exist in ROI between employers are an important lesson. The calculator data essentially shows that where employers are most engaged with their EAP, where usage is higher, the ROI is also greater. The agriculture sector is an example of the impact of a dispersed workforce, where staff are less likely to be based centrally in office environment and without same level of access to HR, employer communications and manager presence. Similarly, staff at national operations appear to be less engaged with EAP services, where the presence of HR and internal communications may be less overt. 

"With more home working and flexible arrangements HR need to ensure there are constant communications around EAPs and ensure the role and range of EAP services is flagged at every key point in an employee's career: when they move between roles, from full-time to part-time, or change to flexible working."

Paul Roberts is EAPA executive and senior consultant for IHC

The ROI calculator, launched in September 2018, was developed for EAPA by the Institute for Employment Studies (IES) and it is free to use. It provides ROI insight into EAP or, with more detailed information on absence and productivity, can be used for regular management reports, as well as for benchmarking against competitors in the sector, regionally and employers of the same size.

"The tool can also be used to look at the potential impact of trying different models of services, changing the level of investment or pushing promotional activity to up the levels of usage, as the basis for HR conversations with Directors of Finance," said Roberts.

Further reading

Return of investment calculator for EAPs launched
  • Employee Benefits
  • 28 September 2018
Eugene Farrell: The value of employee assistance
  • Employee Benefits
  • 16 October 2018
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
  • Topics
  • Employee Benefits
  • Group Protection
  • ROI
  • EAP
  • EAPA
  • Paul Roberts
  • Financial Return on EAPs 2020: How Does Your Organisation Compare?

More on Employee Benefits

Group risk: Five positives we can take forward

‘Harnessing the learnings to date’

  • Group Protection
  • 14 January 2021
Register your free place for COVER Mental Health & Wellbeing 360

Prevention during a pandemic

  • Group Protection
  • 12 January 2021
Will Wood has been appointed head of life and health for INSTANDA
INSTANDA expands life and health focus with ex-Aviva hire

Will Wood, previously head of UK SME strategy at Aviva, has joined insurtech firm

  • Group Protection
  • 12 January 2021
Mental health and race toolkit launched by CMHA

Strategic actions for organisations

  • Employee Benefits
  • 11 January 2021
The 'big five' benefits trends for 2021

‘Get communicating!’

  • Employee Benefits
  • 11 January 2021
blog comments powered by Disqus
Back to Top

Most read

Critical illness: Seven areas to keep an eye on
Critical illness: Seven areas to keep an eye on
Five New Year's resolutions for insurers to consider in 2021
Five New Year's resolutions for insurers to consider in 2021
The 'big five' benefits trends for 2021
The 'big five' benefits trends for 2021
DeadHappy to go 'mainstream' following £4.75m investment
DeadHappy to go 'mainstream' following £4.75m investment
MetLife launches simplified income protection policy
MetLife launches simplified income protection policy
  • Contact Us
  • Marketing services
  • About Incisive Media
  • Terms and conditions
  • Policies
  • Careers
  • Twitter
  • LinkedIn
  • Newsletters
  • YouTube
  • Instagram

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017
Loading